AHMEDABAD: On Monday, the Ahmedabad district collector confiscated properties worth Rs 860 crore in a single day. These immovable assets belong to industrial houses, real estate investors and individuals who defaulted on bank loans for periods ranging from two years to more than a decade.

Banks will repossess these properties which will later be auctioned after they have been valued.

District collector Vikrant Pandey, under the and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, heard some 74 cases of borrowers. In June, Pandey had attached properties worth Rs 3,770 crore where 176 cases were heard before the collector ordered confiscation of properties.

“The district collector is hearing more than 400 cases of defaults involving property worth Rs 5,700 crore. Decisions will be out in a short time,” said a senior district collectorate official.

Pandey said, “The Sarfaesi Act gives the district magistrate power to first seize properties of at the request of banks, so an auction of these properties (residential and commercial) can be conducted. In most of these cases, borrowers failed to repay their loans. Such procedures help banks reduce non-performing assets (NPAs) and helps in their reconstruction,” says Pandey.

A senior official at the collectorate told TOI, “If a borrower, defaults for six months at stretch, banks give them a two-month period to start repaying. On failure to do so, banks declare the loan an NPA and ask the collector to confiscate the properties under the Sarfaesi Act and auction it to recover the dues,” says the official. Get latest news & live updates on the go on your pc with . Download The for your device. in English and other languages.

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